The added worker effect in South Africa
The theory that married women’s labour supply increases in response to their partners job loss is known as the added worker effect (addWE). This paper investigates how married women’s labour force participation, probability of employment and average working hours respond to the recently unanticipate...
Main Author: | |
---|---|
Other Authors: | |
Format: | Dissertation |
Language: | English |
Published: |
Faculty of Commerce
2020
|
Subjects: | |
Online Access: | http://hdl.handle.net/11427/31253 |
id |
ndltd-netd.ac.za-oai-union.ndltd.org-uct-oai-localhost-11427-31253 |
---|---|
record_format |
oai_dc |
spelling |
ndltd-netd.ac.za-oai-union.ndltd.org-uct-oai-localhost-11427-312532020-07-22T05:07:37Z The added worker effect in South Africa Hoffman, Morne Ranchhod, Vimal economics The theory that married women’s labour supply increases in response to their partners job loss is known as the added worker effect (addWE). This paper investigates how married women’s labour force participation, probability of employment and average working hours respond to the recently unanticipated job loss of their partners in South Africa. It also considers the effect of partners job loss on married women’s preference to work and the probability that they work more hours from the previous period. The paper finds that the probability of married women’s participation, employment and average working hours rises (a positive effect) in response to their partners unanticipated job loss. However, these results are all statistically insignificant and its inconclusive evidence can be attributed primarily to limitations in the data. Alternatively, the labour supply responses are modelled to the static unemployment status of partners as a sensitivity check and find the probability of labour force participation of married women falls if their partners are unemployed. Albeit statistically significant, it is argued that this result is predominately due to the idea that people tend to get married to other people of similar socio-economic, religious and ethnic backgrounds (known as assortative mating) which masks the addWE. This approach is thus shown to be inappropriate for the analysis of the addWE. 2020-02-24T09:44:04Z 2020-02-24T09:44:04Z 2019 2020-02-24T09:41:54Z Masters Thesis Masters MCom http://hdl.handle.net/11427/31253 eng application/pdf Faculty of Commerce School of Economics |
collection |
NDLTD |
language |
English |
format |
Dissertation |
sources |
NDLTD |
topic |
economics |
spellingShingle |
economics Hoffman, Morne The added worker effect in South Africa |
description |
The theory that married women’s labour supply increases in response to their partners job loss is known as the added worker effect (addWE). This paper investigates how married women’s labour force participation, probability of employment and average working hours respond to the recently unanticipated job loss of their partners in South Africa. It also considers the effect of partners job loss on married women’s preference to work and the probability that they work more hours from the previous period. The paper finds that the probability of married women’s participation, employment and average working hours rises (a positive effect) in response to their partners unanticipated job loss. However, these results are all statistically insignificant and its inconclusive evidence can be attributed primarily to limitations in the data. Alternatively, the labour supply responses are modelled to the static unemployment status of partners as a sensitivity check and find the probability of labour force participation of married women falls if their partners are unemployed. Albeit statistically significant, it is argued that this result is predominately due to the idea that people tend to get married to other people of similar socio-economic, religious and ethnic backgrounds (known as assortative mating) which masks the addWE. This approach is thus shown to be inappropriate for the analysis of the addWE. |
author2 |
Ranchhod, Vimal |
author_facet |
Ranchhod, Vimal Hoffman, Morne |
author |
Hoffman, Morne |
author_sort |
Hoffman, Morne |
title |
The added worker effect in South Africa |
title_short |
The added worker effect in South Africa |
title_full |
The added worker effect in South Africa |
title_fullStr |
The added worker effect in South Africa |
title_full_unstemmed |
The added worker effect in South Africa |
title_sort |
added worker effect in south africa |
publisher |
Faculty of Commerce |
publishDate |
2020 |
url |
http://hdl.handle.net/11427/31253 |
work_keys_str_mv |
AT hoffmanmorne theaddedworkereffectinsouthafrica AT hoffmanmorne addedworkereffectinsouthafrica |
_version_ |
1719330715603042304 |